Restrictive Covenants

[sleepyjohn]

Hi, I'm helping someone out here......

As Thai law is based on British and French Law, and as restrictive covenants are such a useful thing, do they exist as normal here?

(I am thinking specifically of the starting of a restriction on a commercial unit as to it's type of business and the position of it's entrance. There was a covenant in the deeds of the last building I owned in England. No brewing/gluemaking/confectionery blah/blah etc.)

Can the restriction be positive (ie you MUST have a certain type of business) or must it be negative (you MUST NOT run a travel agency business) or no guideline?

Presumably the covenant could be entered on the chanoot on the next change of ownership?

thanks

Edited April 29, 2010 by sleepyjohn

[BWPattaya]

My intitial response was that it would be a waste of time and money. A sweetener would get it removed, a lawyer or someone at the land office might remove it when it is sold on.

If someone bought it and changed the usage what could be done? A lawyer would take a long time getting it to court. This is Thailand..................................

[stgrhe]

The Thai law was initially based on English law when it was first written because one of the Thai princes had studied law in the UK. However, the Thai law was later changed to a code law and there is nothing left of the English type case law in the current Thai law.

[sleepyjohn]

My intitial response was that it would be a waste of time and money. A sweetener would get it removed, a lawyer or someone at the land office might remove it when it is sold on.

If someone bought it and changed the usage what could be done? A lawyer would take a long time getting it to court. This is Thailand..................................

I don't believe the land office works like that, and there would always be a record of the restriction if, as one presumes, it's recorded on the chanoot. If your suggestion is correct people would be removing debt obligations to banks from their chanoots willy nilly.

The Thai law was initially based on English law when it was first written because one of the Thai princes had studied law in the UK. However, the Thai law was later changed to a code law and there is nothing left of the English type case law in the current Thai law.

thanks Stgrhe.

I'm not sure exactly what a code law is........what would this mean in practical terms? A covenant really is a very useful instrument, one would imagine it would surely be part of the system.

cheers

[chiangmaibruce]

I suggest you do a thaivisa forum search unsing search word "covenant" as there was a thread on this topic fairly recently ... within the last month i think

[stgrhe]

thanks Stgrhe.

I'm not sure exactly what a code law is........what would this mean in practical terms? A covenant really is a very useful instrument, one would imagine it would surely be part of the system.

cheers

The Thai Civil and Commercial Code is a typical example of a code type law. The English case type law looks more at similar cases and is not so specific as a code law.